Operational Risk: Measurement and Modelling

Operational risk is emerging as the third leg of an institutional risk strategy for financial institutions. Now recognized as a potential source of financial waste, operational risk has become the subject of surveys, analysis, and the search for a comprehenvise set of definitions and a shared framework. Written by a leading expert on operational risk measurement, this important work puts forth a cradle-to-grave hands-on approach that concentrates on measurement of risk in order to provide the needed feedback for managing and mitigating it. Using both theoretical and practical material, he lays out a foundation theory that can be applied and refined for application in the financial sector and beyond which includes a new technique called Delta-EVT(trademark). This technique is a combination of two existing methods which provides for the complete measurement of operational risk loss. The book contains comprehensive step-by-step descriptions based on real-world examples, formulas and procedures for calculating many common risk measures and building causal models using Bayesian networks, and background for understanding the history and motivation for addressing operational risk.

DR. JACK L. KING is the managing director of Genoa (UK) Limited, a
consulting and software company specialising in risk. He brings to
the firm almost 30 years' experience in technology and its
application to risk.
From August 1998 to November 2000 Dr King worked as Director,
Operational Risk for Algorithmics, Incorporated. Before joining
Algorithmics, Dr King was a Director in the New York Financial
Consulting Practice of Price Waterhouse, with a concentration in
market and credit risk. From 1992 - 1996, Dr King was a scientist
with the United Nations' International Atomic Energy Agency in
Vienna, Austria where he developed enhanced systems for the
measurement and control of global nuclear risk.
Dr King's education includes a Ph.D. in Computer Science, MBA, MA
Finance, BS Computer Science, and BS Electrical Engineering. He is
a member of IEEE and ACM and is a frequent contributor to
risk-related magazines and newsletters.

Permissions

To apply for permission please send your request to permissions@wiley.com with
specific details of your requirements. This should include, the Wiley title(s), and the specific portion of the content you wish to re-use
(e.g figure, table, text extract, chapter, page numbers etc), the way in which you wish to re-use it, the circulation/print run/number of people
who will have access to the content and whether this is for commercial or academic purposes. If this is a republication request please include details
of the new work in which the Wiley content will appear.